City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01184 June 28, 2022
Title: Contract: Interagency Reimbursement Agreement for Renewable Liquified Natural Gas
Location: Citywide
Recommendation: Pass a Motion: 1) approving the use of the Interagency Reimbursement Agreement between the County of Sacramento and the City of Sacramento, Department of Public Works, Fleet Management Division, based on the cooperative purchase contract (Contract No. WA00038567) with Clean Energy for the purchase of renewable liquified natural gas at the County’s fueling station in an amount not to exceed $600,000 for the potential five- year term; and 2) authorizing the City Manager or the City Manager’s designee to execute the contract and renewal options specified above provided that sufficient funds are available in the budget adopted for the applicable fiscal year.
Contact: Alison Kerstetter, Program Specialist, (916) 808-1163, [email protected]
; Mark Stevens, Fleet Manager, (916) 808-5869,
[email protected]; Department of Public Works
Presenter: None
Attachments:
1-Description/Analysis
2-Agreement
Description/Analysis
Issue Detail: The Department of Public Works, Fleet Management Division, has an ongoing requirement to purchase renewable liquified natural gas (RLNG) for the Department of Public Works, Recycling and Solid Waste Division. The contract allows for the city to fuel equipment at the county’s fueling sites to allow for a more efficient fueling process at different places within the service area.
Policy Considerations: The recommendations in this report are in accordance with Sacramento City Code Chapter 3.56.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act: No environmental review is necessary because the recommendations in this report involve the purchasing of renewable liquified natural gas and are not considered to be a project in accordance with Section 15378(b)(2) of the California Environmental Quality Act guidelines.
Sustainability: The recommended purchases in this report are consistent with the Fleet Sustainability policy, adopted by City Council on December 12, 2017 (Resolution 2017- 0478). The County’s cooperative purchase contract with Clean Energy is for the purchase of RNLG which is a form of liquified natural gas (LNG) that is produced from solid waste material. RNLG is considered to be more environmentally friendly than LNG which is generated from fossil, or nonrenewable, sources.
Commission/Committee Action: None.
Rationale for Recommendation: In past years, the County has issued a Request for Bid (RFB) for RLNG. The City was named as a participant listing City fueling sites to capture greater savings in bulk buying. In June 2019, the County issued an RFB No. 8663 for RNLG for which Clean Energy was awarded the contract (Contract No. WA00038567). The interagency agreement allows the City to fuel at the County’s North Area Transfer Station (NATS) located at 4450 Roseville Road, North Highlands, California.
Using the cooperative purchase agreement with the County of Sacramento and Clean Energy represents the most advantageous purchasing strategy. The contract was competitively bid, and the County of Sacramento receives greater discounts from the manufacturer due to a higher purchase volume than the City would receive if issuing its own bid.
In an ongoing effort to maximize cost savings and staff resources, many government agencies share contracting efforts through cooperative purchasing. This procurement method increases pricing competitiveness and lowers capital costs through volume buying. When comparing the administrative costs of procurement, staff considers product research, source selection, specifications, advertising, staff reports, awarding, protest, and administration of the contract.
The City has used both regional and national cooperative purchase agreements to complement its own contracting initiatives. Cooperative purchasing enables City departments to evaluate a broader range of contracting opportunities and to share resources with other jurisdictions. Cooperative purchasing also leverages internal and external resources to maximize cost savings opportunities for the City.
Financial Considerations: Sufficient funds are available in the Department of Public Works, Fleet Management Division’s Fiscal Year (FY) 2022/23 operating budget (Fleet Fund, Fund 6501) to make purchases through June 30, 2023. Purchases made after June 30, 2023, are subject to funding availability in the adopted budget of the applicable fiscal year.
Local Business Enterprise (LBE): Clean Energy is not an LBE. The minimum LBE participation requirement is waived for the City’s use of cooperative purchase agreements that have been competitively bid, evaluated, and awarded by other governmental agencies that may or may not have similar LBE programs.
______________________________
CONTRACT
ROUTING SHEET
Contract Cover/Routing Form: Must Accompany ALL Contracts; however, it is NOT part of the contract.
General Information (Required)
Original Contract # (supplements only):
Supplement/Addendum #:
Assessor’s Parcel Number(s):
Contract Effective Date: 07/01/2022_ Contract Expiration Date (if applicable):06/30/2027
$ Amount (Not to Exceed): $ 600,000.00 Adjusted $ Amount (+/-):
Other Party:
County of Sacramento
Project Title: Interagency Reimbursement for Renewable Liquefied Natural Gas (RLNG)
Project #: Bid/RFQ/RFP #:
City Council Approval: YES if YES, Council File ID#: 2022-01184 Contract Processing Contacts
Department: Public Works Project Manager: Alison Kerstetter
Contract Coordinator: Song Moua Email: [email protected]
Department Review and Routing
Accounting:
Supervisor:
Division Manager:
Other:
(Signature)
(Date)
(Signature) (Date)
(Signature)
(Date)
(Signature) (Date)
Special Instruction/Comments (i.e. recording requested, other agency signatures required, etc.) Recording Requested Other Party Signature Required
------------------FOR CLERK & IT DEPARTMENTS ONLY – DO NOT WRITE BELOW THIS LINE------------------
CC Rev. 12.19.2018
INTER-AGENCY REIMBURSEMENT AGREEMENT BETWEEN THE COUNTY OF SACRAMENTO AND THE
CITY OF SACRAMENTO DEPARTMENT OF PUBLIC WORKS, FLEET MANAGEMENT DIVISION This Inter-Agency Reimbursement Agreement (“Agreement”), made and entered into on July 1, 2022, is between the County of Sacramento, a political subdivision of the State of California, (“County”) and the City of Sacramento, a charter city and municipal corporation (“City”).
The purpose of this Agreement is to memorialize City’s arrangement with the County permitting the City to enter and utilize the County’s fueling station. The City, on a monthly basis, shall reimburse the County for all Renewable Liquid Natural Gas (RLNG) fuel that City obtains in accordance with the rates stated in the agreement between the County of Sacramento and its selected vendor (currently Clean Energy through an agreement dated 07/09/2019 found in Exhibit B), plus the agreed upon County markup. This agreement does not guarantee County will be able to supply City all the RLNG fuel City may need or that City will purchase RLNG fuel from County. This agreement only addresses how RLNG fuel obtained from the County shall be reimbursed by City.
NOW, THEREFORE, in consideration of the mutual promises contained herein, the Parties hereby agree as follows:
1. Term of Agreement – This Agreement shall commence on the date designated above (“Commencement Date”) and shall remain in effect until June 30, 2027 (“Expiration Date”) unless terminated earlier pursuant to the provisions of Section 6 or Section 7
2. Notice – Except for invoice billing requirement in Section 3, any other notice, demand, request, consent, or approval that either party hereto may or is required to give the other pursuant to this agreement shall be in writing and shall be either personally delivered or sent by mail, address as follows:
COUNTY CITY
Keith Leech Mark Stevens
County of Sacramento City of Sacramento
Department of General Services Department of Public Works Fleet Services Division Fleet Management Division
4001 Branch Center Road 5730 24th Street, Building 1
Sacramento, CA 95827 Sacramento, CA 95822
Either party may change the representative or address to which subsequent notice and/or other communications can be sent by giving written notice designating a change of representative or address to the other party, which shall be effective upon receipt.
3. Invoices – County shall submit an electronic invoice to City after the close of each billing period, detailing the Reimbursement Amount (defined in Section 5 below) due from City to County for all RLNG issued fuel during the billing period to City from County’s RLNG fuel station and, if applicable, from County’s RLNG mobile fueler, in accordance with the rates in the Cooperative Purchase Agreement. County shall include with each invoice a detailed fuel usage report listing each fuel transaction included in the invoice amount, plus the Administrative Markup (defined in Section 5below). Required Invoice details are found in Exhibit A.
4. Permission to Enter – County hereby grants temporary and revocable, non-exclusive permission to the City to enter the County’s fueling site(s) at 4450 Roseville Road, North Highlands, CA 95660 to use the RLNG fueling station(s).
5. Reimbursement – City shall promptly reimburse County in full for the cost of RLNG fuel invoices, including the administrative markup (“Administrative Markup”), which will not exceed the per gallon cost County charges each of its internal departments for fuel. The Administrative Markup, effective the date of this agreement is $0.42 per gallon. County shall notice to City no less than 30 days prior to any change to the Administrative Markup. City agrees to pay each invoice within 30 days of the invoice date. Checks shall be made to the order of County of Sacramento and mailed to the payment address listed below:
County of Sacramento
Fleet Services Division
4001 Branch Center Road
Sacramento, CA 95827
6. Default – In the event that County does not receive full reimbursement for an invoice pursuant to the terms of Section 5, County will notify City in writing of City’s default. County will terminate City’s access to RLNG fuel if the default is not fully corrected within 30 days of County’s notification of default.
7. Termination – Section 6 notwithstanding, either party may terminate this agreement at any time upon 90 days prior written notice to the other party, whether such party is in default. Written notice of termination of this agreement shall be addressed to the applicable party’s contact and mailing address as listed in Section 2. The effective date of the termination shall be 90 days from the written notice of termination. In the event of termination, City shall pay County within 30 days of the effective date of termination, for RLNG issued to City up to the effective date of termination.
8. Indemnification – City shall defend, indemnify and hold harmless County, its governing body, officers and employees, from and against all demands, claims, actions, liabilities, losses, damages and costs, including payment of reasonable attorneys’ fees, whether incurred by County’s staff attorneys or outside attorneys, arising out of or resulting from the performance of this Agreement, caused in whole or in part by the negligent of intentional acts or omissions of City, its officers, directors, agents, employees, volunteers, invitees, subconsultants, or subcontractors.
County shall defend, indemnify and hold harmless City, its governing body, officers and employees from and against all demands, claims, actions, liabilities, losses, damages, and costs, including payment of reasonable attorney’s fees, whether incurred by City’s staff or outside attorneys, arising out of or resulting from the performance of this Agreement, caused in whole or in part by the negligent or intentional acts or omissions of County, its officers, directors, agents, employees, volunteers, invitees, subconsultants, or subcontractors.
It is the intention of City and County that the provisions of this section be interpreted to impose on each part responsibility to the other for the acts and omissions of their respective officers, directors, agents, employees, volunteers, invitees, subconsultants, or subcontractors. It is also the intention of City and County that, where comparative fault is determined to have been contributory, principles of comparative fault with be followed and each part shall bear the proportionate cost of any damage attributable to the fault of that party, its officers, directors, agents, employees, volunteers, invitees, subconsultants and subcontractors.
This indemnity obligation shall not be limited by the types and amounts of insurance or self- insurance maintained by the parties.
Nothing in this indemnity obligation shall be construed to create any duty to, any standard of care with reference to, or any liability or obligation, contractual or otherwise, to any third party.
The provisions of this indemnity obligation shall survive the expiration or termination of the Agreement.
9. Amendment – With the exception of changes to the representative and contact information in Section 2 and the Administrative Markup in Section 5, no modification or amendments to this Agreement shall be valid unless it is set forth in a written amendment to this Agreement signed by the parties hereto. Updates to the Cooperative Purchase Agreement and Administrative Markup statement will be provided to City within 15 days of any changes and will be effective immediately. Updates to the representative and contact information in Section 2 will be provided according to the terms of Section 2.
10. Entire Agreement – This Agreement constitutes the entire understanding between City and County. Any prior agreements, whether oral or written, between City and County regarding the subject matter of this Agreement are hereby terminated effective immediately upon full execution of the Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date indicated below.
City of Sacramento County of Sacramento
A Municipal Corporation A Political Subdivision of California
_______________________________ _______________________________ Ryan Moore, Director of Public Works David Villanueva, Deputy County Executive
_______________________________ _______________________________ Hector Barron, Assistant City Manager Jeffrey A. Gasaway, Director of General Services
Approved as to Form: Approved as to Form:
_______________________________ _______________________________ City Attorney County Attorney
Attested By:
______________________________
City Clerk
Exhibit A
Usage Reports
County currently uses the FuelFocus fuel management systems to generate fuel usage reports that feed into the invoices generated and sent to the City each billing period. County agrees to:
1. Send an electronic copy of the same fuel usage report in Microsoft Excel format to the following City email address: [email protected].
2. The electronic copy includes the following information for each fuel transaction:
a. Fuel product type
b. Fuel issue date
c. System entry date of fuel transaction
d. Unit / Account number
e. Quantity of fuel issued
f. Price per unit of measure, including the Administrative Markup g. Total cost of transaction
Exhibit B